BOSTON, Oct. 2 /PRNewswire/ -- Today Cabot Industrial Trust (NYSE: CTR), a
national developer, owner and operator of industrial property, announced the
formation of a joint venture with GE Capital Real Estate to acquire and
develop workspace and multi-tenant industrial properties. Cabot is the
operating partner and will be paid acquisition, development and management
fees for services it provides to the venture. In addition, Cabot Industrial
Trust can earn incremental cash flow participation if GE Capital Real Estate
achieves certain return thresholds.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000218/CABOTLOGO )
The venture plans to acquire and develop up to $250MM of industrial
properties throughout the country. GE Capital's commitment is 80% of the
equity or $100 million and Cabot's commitment is 20% of the equity or
$25 million. The balance will be funded by debt for a target leverage level
of 50%.
The venture acquired its first property for $12 million in Atlanta. The
property consists of 5 buildings totaling 333,946 sq. ft. with 15 tenants.
Ferdinand Colloredo-Mansfeld, Chief Executive Officer of Cabot Industrial
Trust, remarked, "We are very pleased to be working with GE Capital Real
Estate as our partner in the industrial property sector. Given the successful
track record, the size and breadth of the GE Capital organization, we are
working with them on a number of fronts to not only pursue investments but
also to provide additional services to our tenants."
"We believe that Cabot is one of the better operators in the industrial
sector, with its proven track record of operating and investing in industrial
properties," Michael Pralle, President and CEO of GE Capital Real Estate
commented. "This strategic alliance between GE Capital and Cabot will enable
us to pursue opportunities in an area that we believe will provide strong
returns given the continued growth of the U.S. economy."
Robert Patterson, President of Cabot Industrial Trust, noted, "This joint
venture is focused on investing, primarily through acquisitions, in
multi-tenant and workspace properties. These properties continue to
experience strong demand particularly from fast growing businesses that are
driving this economic expansion. These companies require high quality modern
facilities and have become increasingly location sensitive in order to attract
and retain a good workforce. This venture with GE provides additional capital
to execute this part of our investment strategy.
Franz Colloredo-Mansfeld, Chief Financial Officer of Cabot Industrial
Trust, stated, "Our joint venture programs increase our return on capital and
improve our profitability. Over the course of 2001, we will accelerate our
program of redeploying capital from stabilized assets into development and
joint venture programs."
GE Capital Real Estate, ( http://www.gecapitalrealestate.com ) headquartered in
Stamford, Conn., is one of the industry's leading global sources for
commercial real estate capital through Structured Finance, Equity and Capital
Markets products with a portfolio of over $18 billion. GE Capital, with
assets of over $345 billion, is a global, diversified financial services
company with 28 specialized businesses. A wholly owned subsidiary of General
Electric Company, GE Capital, based in Stamford, Conn., provides equipment
management, mid-market and specialized financing, specialty insurance and a
variety of consumer services, such as car leasing, home mortgages and credit
cards, to businesses and individuals around the world. GE is a diversified
manufacturing, technology and services company with operations worldwide.
Cabot Industrial Trust is a fully integrated real estate company that
specializes in the ownership, acquisition and development of industrial
properties with 350 properties containing 42 million square feet in 22 states
at June 30, 2000. The Company also manages an additional 10 million square
feet of property for investment advisory accounts and for joint venture
accounts at June 30, 2000. Cabot Industrial Trust focuses on a broad spectrum
of industrial property types nationwide, including large bulk distribution
facilities, multitenant distribution facilities and workspace properties.
In addition to historical information, this press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations about the industry and the markets in which the Company
operates. Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties or other
factors which may cause actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Actual
operating results may be affected by various factors including, without
limitation, changes in national and local economic conditions, competitive
market conditions, uncertainties and costs related to and the imposition of
conditions on receipt of governmental approvals and costs of material and
labor, all of which may cause such actual results to differ materially from
what is expressed or forecast in this press release.
To receive Cabot Industrial Trust's latest news release and other
corporate documents please send requests via e-mail at ir@cabottrust.com or
visit our web site at http://www.cabottrust.com .
SOURCE Cabot Industrial Trust
 back to top
Related links:
http://www.cabottrust.com
http://www.gecapitalrealestate.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000218/CABOTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
|
